The retail industry has entered a new “abnormal,” driven by the COVID-19 pandemic. Trips to the mall, dining inside a restaurant, socializing over coffee, heading to the gym; all came to an abrupt halt as stay-at-home measures were issued to prevent the spread.
Now, as states begin to loosen select restrictions, both customers and retailers have found themselves adjusting to the new reality. Over the last few months, consumer shopping changed from a luxury to a necessity, many relying upon essential retailers to get them through this time of uncertainty. Meanwhile, for retailers, operational upheavals have ushered in no-touch business practices focused on protecting both customers and employees.
The result has been a shift in business priorities, with savvy retailers recognizing the importance of pushing aside growth in favor of customer loyalty. Specifically, retailers are adopting a “we’re all in this together” mentality to create customer experiences unlike anything seen in the past.
Here are a few significant shifts in the shopper mindset as retailers move forward.
“The safety of my family is most important”
It’s imperative for retailers to keep their focus on the health, safety and comfort of employees and customers alike. At a minimum, the customer expects retailers to provide employees with disposable gloves and face masks, install Plexiglas safety shields at customer service or offer touchless checkout. They must feel everyone is protected. Additionally, many retailers are designating employees to wipe down shopping carts and self-checkout areas before and after each use. Others have gone even further, installing floor signage to help shoppers maintain the suggested six-foot spatial distancing and replacing public drinking fountains with complimentary bottles of water. Customers are emerging from a place of protecting themselves and loved ones above all else. Brand loyalty will only happen if the customer feels retailers are equally concerned about their health and safety.
“I will support retailers who understand how I want to shop”
Another way stores are adopting social distancing measures is by expanding their drive-through/drive-up service or, for most, offering it for the first time. In fact, Best Buy announced its online sales are up 250%, mostly through curbside drive up or home delivery. Lowe’s, Walmart and others have altered their “buy online pickup in store” (BOPIS) strategy to allow customers to order online, drive to a designated pickup area in the parking lot, and have a store employee place pre-purchased items inside their trunks. In many locations, they are expanding the pickup spots to include specific locations for first responders, the elderly or compromised. Likewise, many restaurants are bringing pre-placed orders to diners with curbside delivery. And delivery services are experiencing explosive growth. These measures, many of which were previously unused, are bringing the touchless experience customers want to the places they depend upon most. Shop-for-me services have changed the societal landscape.
“I am making fewer trips and I need to be confident you are in stock”
Shopping behaviors have dramatically changed as we move through the pandemic. What began as a mad rush for paper products has transitioned to stockpiling shelf-stable goods and frozen food. Sophistication in AI or shopping data should enable retailers to alter their supply chain and demand planning to anticipate the emerging trends in order to react accordingly. Real-time store-level inventory visibility through smart technology delivers customer confidence. These simple practices are showing customers the goal is not to empty the shelves for themselves, but to show they are taking measures to ensure all shoppers have access to everything they need. Such practices will be remembered long after the pandemic is over.
“I remember how you made me feel in this time of uncertainty”
On April 15, the U.S. Census Bureau reported total retail sales fell 8.7% from the previous month — the largest decline in the nearly three decades that this data has been tracked. Thus, retailers should take time to show appreciation for customers who frequent their locations. This entails thinking like a customer to start with and delivering enhanced training on customer service. Acknowledging the customer has experienced major disruption and providing a sense of assurance and control is enormous. Show appreciation in the form of a handwritten note, an email, a special message written on a to-go box or even a coupon to encourage repeat business.
“Society may have changed for good…how I feel is still important”
There’s plenty of business to be had — now and once COVID-19 is in the rearview mirror. However, it’s what retailers do now which will make a difference for the consumer. Social distancing in some form may be here to stay and that means retailers will need to continue to reinvent what customer experience means to their brand and customers. The importance of customer experience cannot be emphasized enough. Going the extra mile to help consumers in meaningful ways both now and in the future will surely help retailers succeed — simply selling a product will not.
In a recent conversation with the manager of a regional retail operation that has been shuttered for the past two months, I asked them to highlight their re-opening strategy.
The response? “It’s going to be a bit like Field of Dreams… open and they will come.”
Possibly. But to win consumers’ confidence, retailers must be part of shoppers’ new journey and help them feel that we’re all in this together — and thankful for the chance to serve them.
Ron Lutz is chief retail officer at Miller Zell.